Here’s a detailed comparison of Dubai real estate vs. major global markets in 2025, covering key metrics like rental yields, capital appreciation, affordability, taxes, and risk:
1. Rental Yields
- Dubai offers 6–8% gross yields, with pockets reaching up to 11% in areas like DIP or Discovery Gardens
- New York and London typically yield 2–5%
- Singapore, Paris, and Hong Kong offer 2–3.5%
- In comparison, Bangkok or Istanbul may reach 5–7%, but lack Dubai’s infrastructure and liquidity
2. Affordability (Price per Sq. ft)
- Dubai properties average $550–650/sq. ft; some luxury units hit $1,000–2,000.
- London: $2,000–3,000, prime zones over $5,000+
- New York: $1,500–2,500, luxury higher.
- Singapore: $1,500–2,000
- Thus, Dubai offers more property for less money, especially at the entry level.
3. Capital Appreciation
- Dubai: a dramatic ~20% price surge in 2024; expected steady growth into 2025 . Villa prices rose ~60% from 2022 to early 2025,
- Generally, Dubai delivers longer-term annual growth of 5–7%, with spikes to 15–20% in boom cycles
- London, New York, Singapore see steadier 3–6% per year.
4. Tax & Ownership Environment
- Dubai: no taxes on rental income, capital gains, personal income, or property tax; only a nominal 4% transfer fee
- Other cities:
- London: up to 15%+ stamp duty, 28% capital gains tax, annual property tax, plus income tax
- New York: high federal/state/city taxes, plus local property/capital gains taxes.
- Singapore: stamp duties of 20–30% for foreigners, property, and capital gains taxes.
5. Market Risks & Outlook
- Dubai is poised for a market correction: Fitch forecasts a possible -15% drop in prices by late 2025–2026 due to oversupply (~210,000 units). Nonetheless, strong fundamentals and developer resilience are expected to mitigate the long-term impact.
- London/New York display slower growth but are more stable; however, high taxes and policy shifts limit net returns
6. Summary Table
| Metric | Dubai | London | New York | Singapore |
| Rental Yield | 6–8%, up to 11% | 2–4% | 3–5% | 2.5–3.5% |
| Price per sq. ft | $550–650 | $2,000–3,000+ | $1,500–2,500+ | $1,500–2,000 |
| Capital Appreciation | 5–7% avg; spikes 15–20% | 3–6% | 3–6% | 3–6% |
| Taxes & Fees | 0%; +4% transfer fee | 15%+stamp duty, CGT, income tax | High local & federal taxes | 20–30% stamp duty, taxes |
| Risk & Volatility | Higher, but indexed to supply | Lower volatility, taxed | Lower volatility, taxed | Moderate volatility, taxed |
Final Take
- Dubai = best for high rental income, low entry cost, and tax-free returns—but with greater volatility.
- London/New York/Singapore = more stable, but lower yields, higher taxes, and higher costs.
- Dubai is ideal for investors who prioritize cash flow and growth and can manage short-term cycles.
- Interested in safety, stability, or prestige? Then, mature markets may be more fitting—just expect lower net gains.
